IRS error in Taxpayer favor Project
Tom, an executive for a large corporation, enjoys the challenge of doing his own tax return. In all the years Tom has completed his return, he has never been audited. However, in preparing his 2015 tax return, Tom misinterpreted a complex change in the law and is being audited. Aware that he probably should have an expert represent him before the IRS, Tom hires Joe, a local CPA. During the audit process, Joe finds expenses that Tom had failed to deduct. However, the IRS also disallowed some of Tom’s other deductions. During a meeting, Joe and the IRS agent agree on Tom’s revised taxable income. When Joe receives the auditor’s change letter, he checks the agent’s calculation and finds the agent miscalcuated the new tax liability by $750 in Tom’s favor. In fact, Tom will now receive a refund. When Tom receives his copy of the letter, he leaves a message on Joe’s voice mail congratulating him on his work. If you are Joe, what do you do?
